City of Kharkiv Planning Placement of UAH 20 Million Municipal Bonds
ARTA will act as an underwriter in the upcoming issue and placement of UAH 505 million in municipal interest-bearing bonds to be issued by the City of Kharkov.
The city of Kharkov intends to issue 200 thousand three-year bonds (B series) and 305 five-year bonds (C series) at a face value of UAH 1000 per bond.
In a nod to the high solvency of the issuer the national credit rating agency - Credit Rating –– has assigned uaA rating to the City of Kharkov.
The Kharkov City Council plans to invest these borrowings to develop the city’s infrastructure, including construction of a cogeneration plant, complete reconstruction of utility systems in residential buildings, renovations in the housing sector and sewer systems, road construction (i.e. the purchase of specialized road making machinery to repair old roads and build new ones).
NOTE:
Kharkov has achieved a 2.5 time increase in its consolidated budget income over the last five years to UAH 2,386.2 million. In 2007, the general budget was UAH 439.2, while the special-purpose budget amounted to UAH 144.3 million (including funds transferred from the general budget for development purposes). The city also received a total of UAH 602.7 million from the national and regional coffers.
In 2007 alone, Kharkov demonstrated a 1.6 time increase (UAH 872.2 million) in its budget resources over 2006, including a 1.4 time rise in the general income (UAH 442.1 million), 1.8 time rise in the specialized budget (UAH 151.8 million, incl. funds transferred from the general budget for development purposes), and a 1.9 time increase in transfers from the national and regional budgets (UAH 278.3 million).
ARTA Investment Group includes ARTA Investment Partners Ltd., ARTA Securities Ltd., and ARTA Assets Management Ltd. Since 2002, ARTA provides a full range of investment banking services including brokerage, corporate finance and asset management. ARTA has attracted approx USD 1.5 billion of investments to the local market.
In 2005, ARTA acted as a lead manager in a UAH 100 million three-year A Series bonds issue for the City of Kharkov.